Use the figure below to answer the following questions.

Figure 13.3.2
-Consider Figure 13.3.2. Consider a single-price monopoly. If the light grey area shows the consumer surplus, and the dark grey area shows the producer surplus, which graph correctly represents this firm?
A)(a)
B)(b)
C)(c)
D)(d)
E)(b)and (c)

Question

Use the figure below to answer the following questions.
  
Figure 13.3.2
-Consider Figure 13.3.2. Consider a single-price monopoly. If the light grey area shows the consumer surplus, and the dark grey area shows the producer surplus, which graph correctly represents this firm?
A)(a) 
B)(b) 
C)(c) 
D)(d) 
E)(b)and (c)

Quizplus · Accepted Answer

In a single-price monopoly, the firm maximizes profit where marginal cost equals marginal revenue, resulting in a consumer surplus (light grey) and a producer surplus (dark grey). Graph (b) correctly represents this scenario.

Use the Figure Below to Answer the Following Questions